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The Robertsonian Theory of Interest

  • John R. Presley

Abstract

The logical extension of the analysis of the preceding section is to explore the relationship which exists in Robertsonian theory between saving and investment. In this one encounters the theory of the rate of interest since the Robertsonian approach argues that changes in saving act upon investment via the rate of interest. First thoughts on this subject might lead one to believe that interest theory is straightforward — there seems little controversial in the proposition that savings will act on investment through changes in the rate of interest; but the 1930s saw the elevation of interest theory to a position of extreme importance in the theoretical debates surrounding especially Keynes’ Treatise and the General Theory and the work of the Austrian and Swedish schools on industrial fluctuation.1

Keywords

Interest Rate Commercial Bank Money Supply Marginal Productivity Disposable Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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The Robertsonian Theory of Interest

  1. 11.
    E. Boehm-Bawerk, Recent Literature on Interest, (London and New York: Macmillan, 1903).Google Scholar
  2. 23.
    G. Cassel, Nature and Necessity of Interest, 1903.Google Scholar
  3. 30.
    F. Ramsey, ‘A Mathematical Theory of Saving’, EJ, (December 1928) pp. 543–59; for a fuller discussion of this model see (Conspard, AnIntroduction to the Theory of Interest, pp. 83–9.Google Scholar
  4. 37.
    F. Ramsay, op cit., A. Lerner, The Economics of Control, (New York: Macmillan, 1944).Google Scholar
  5. 45.
    A. Lerner, ‘On the Marginal Productivity of Capital and the Marginal Efficiency of Investment’, Journal of Political Economy, Vol. 61, (1953) pp. 1–14.CrossRefGoogle Scholar

Copyright information

© John R. Presley 1978

Authors and Affiliations

  • John R. Presley

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